Its been more than 2 months of pathetic trading. Pick any stocks and you can find tons of reasons not to like them. But thats the way it is when share prices are depressed. The overall negative sentiment somehow will work its way into downgrading the prospects of all stocks.
If someone has 100% in cash, should they buy now. Technically I wouldn't buy on down trends. I would be more willing to pay 10% higher prices, at least I know I am buying on an uptrend. However, we should get ready our shopping list. Time line 3-6 months view.
What I Like
1) MBSB - While I still think the business model is a bit flawed, their revenue stream seems intact for now. There will come a time when NPLs will be a problem but not for a couple of years yet. Seemingly, this is the kind of stock that is shielded from all the negatives from Europe and the US. So I am happy to pick this one below RM1.50.
2) Evergreen - Too much negatives on USD prices of materials. If you had been talking to management for the past 6 months, you will find that they have raised their prices 3 times this year. The Japan demand has been sustained owing to certain natural calamities. Investors should be pleasantly surprised with their upcoming quarterly and half yearly results. Below RM1.05 is OK.
3) EAH - I spoke to management and they are well on track to doubling their net profits this year. The DDSB acquisition is a big plus. Up to RM0.32 is OK.
4) SP Setia-WB - Its back to the levels before it made its run from 40 sen to above RM1.60. Yes, there are negatives creeping in to property stocks but below RM0.50 seems a decent bet to me.
5) Benalec - I did not see them suffering major downshifts in fundamentals over the last 6 months. Below RM1.20 is OK.
6) UOA Dev - Below RM1.50 gives a lot of comfort. Very little liquidity now which may indicate minimal selling pressure.
NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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